COMMERCE 1E03 Final: Chapter 14 Exam Study Guide

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Chapter14-Marketing
Marketing - a set of business practices to plan and present an organization's new product or services
that build effective customer relationships
• Usually focused on helping the seller, sell
• Most people think of it as: Seller to Buyer
• Now a days, its about helping the Buyer buy
Marketing Eras:
The Production Era
• From the time Europeans arrived in Canada until the start of the 1900's
• Philosophy "Produce as much as you can as there is a limitless market for it"
• Limited production capability
• High demand for products
• Demand exceeded supply
• Business owners were mostly farmers, carpenters and trade workers
Sales Era
Production capability often exceeded market demand
•
• Business philosophy turned from producing to selling
• Emphasized advertising in an effort to persuade customers to buy existing products
Marketing Concept Era
• After world war II, soldiers returned to start business and begin families
• Huge demand for goods and services
• Baby boom caused huge birth rate and a boom in consumer spending
• Competition was fierce
• Marketing Concept was developed, consisted of:
1. Customer Orientation • Find what the customers want, then provide it for them
2. Service Orientation
• Make sure everyone in the company from the president to ground level workers have
the same motto, Customer Service is Key
3. Profit Orientation
• Focus on the goods and services the will reel in the most profit
Market Orientation Era
• Firms in this era focus on Market Orientation:
1. Continuously collecting information about customers' needs and competitors' capabilities
2. Sharing this information throughout the organization
3. Using this information to create value, ensure customer satisfaction and develop customer
relationships
• Using Customer Relationship Management - the long term process of building customer
relationships
Social Media Marketing Era
• Social Media Marketing is divided into two dimensions:
1. Social media marketing is about consumer generated online marketing efforts to promote
brands and companies for which they are fans
2. Social media marketing is the use by marketers of online tools and platforms to promote
their brands or organizations
• The most common tools or platforms used by both consumers and organizations are
social networking sites
The Marketing Mix 4 P's
Price - designing a wanting/satisfying product
Product - setting a price for the product
Place - getting the product in a place where people will buy it
Promotion - promoting the product effectively
Applying the Marketing Process with the Four P's
1. Find Opportunities
2. Conduct research
3. Identify a target market
4. Design a product to meet the need based on research (Product)
5. Do concept testing that includes determining a brand name, design and package
6. Set a price (Price)
7. Select a distribution system (Place)
8. Design a promotional program (Promotion)
9. Build a relationship with customers
Designing a Product to Meet customer needs
Test Marketing
o The process of testing new products among potential users
The Service Continuum o
Brand Name
o A word, letter or group of words or letters that differentiate one seller's goods and services
from those of competitors
Setting an appropriate Price
• Price is the money or other consideration (other goods and services) exchanged for the ownership
or the use of a good or service
• The price depends on a number of factors including:
o
Competitiveness
o To attract business (low ball)
o To maximize profit from a high quality product